NAME – RITOBRATO ROY
ROLL – 10800119060
BATCH – A2
SEM – 8TH
SUBJECT CODE – OEC-CS802A
SUBJECT NAME – E-COMMERCE AND ERP
PROF. NAME – VEDATRAYEE CHATTERJEE
TOPIC – DIFFERENT TYPES OF BUSINESS MODELS
Business Model
Evolution of Business Model
Different Types of Business Model
References
An e-commerce business model is how to setup an e-commerce business which is structured conceptually in
order to reach customers and drive sales. Business model describes entire procedure of creation, delivery,
and capturing of organizational values in both economic and social aspects. It represents core aspects of the
business which include strategies, organizational structure, purpose, operational processes, policies,
infrastructure, and business practices.
Entire functioning of the business is based over this business model as it provides guideline to the
organization to carry out all its activities. Thus there is a need to define business model of any organization
at first in an explicit manner to avoid all the discrepancies at first end. Business model directly focuses over
customer needs as it is this particular aspect along with product differentiation strategy, i.e. to introduce new
product to make sure that company is able to capture optimum market share. There are several types of e-
commerce business models that enable different kinds of companies to position themselves in the market
and reach their customers in an effective way.
There are two layers to finding the right e-commerce business model. The first layer determines how we’re
setting up our company — it defines to whom we’re selling and how we’re positioning what we have to sell.
Then comes figuring out our actual e-commerce business model — the way our business plans to find and
capture customers and how they’ll interact with the product.
The first phase comprised the following trends:
1. Business organizations rushed to establish an e- commerce website.
2. Little or no regard was given to check how reliable the site needed to be.
3. It was a matter of beating competition.
Drawback: There was no or little integration with the production side of the business. Reasons:
Growth of consumer base, Request for real-time order status and Return of products
In the Second phase, organizations started planning about integrating the back-end and real
time transaction processing.
Business are using Internet Technologies and integrating their systems and processes more
efficiently are now breaking the barrier.
This has been possible due to: Capitalizing on a continuous business proposal and correctly
applying technology.
Different Types of Business Model
1. Business - to – Business: A website following the
B2B business model sells its products to an
intermediate buyer who then sells the product to
the final customer. As an example, a wholesaler
places an order from a company's website and after
receiving the consignment, sells the end product to
the final customer who comes to buy the product at
one of its retail outlets.
2. Business - to – Consumer: A website following the
B2C business model sells its products directly to a
customer. A customer can view the products shown
on the website. The customer can choose a product
and order the same. The website will then send a
notification to the business organization via email
and the organization will dispatch the
product/goods to the customer.
3. Consumer - to – Consumer: A website following the C2C
business model helps consumers to sell their assets like
residential property, cars, motorcycles, etc., or rent a room by
publishing their information on the website. Website may or
may not charge the consumer for its services. Another
consumer may opt to buy the product of the first customer
by viewing the post/advertisement on the website.
4. Consumer - to – Business: In this model, a consumer
approaches a website showing multiple business
organizations for a particular service. The consumer places
an estimate of amount he/she wants to spend for a particular
service. For example, the comparison of interest rates of
personal loan/car loan provided by various banks via
websites. A business organization who fulfills the consumer's
requirement within the specified budget, approaches the
customer and provides its services.
5. Business - to – Government: B2G model is a variant of B2B
model. Such websites are used by governments to trade and
exchange information with various business organizations. Such
websites are accredited by the government and provide a
medium to businesses to submit application forms to the
government.
1. https://www.nerdwallet.com/article/small-business/e-commerce-
models#:~:text=An%20e%2Dcommerce%20business%20model%20is%20ho
w%20your%20e%2Dcommerce,customers%20in%20an%20effective%20way
2. https://www.tutorialspoint.com/e_commerce/e_commerce_business_models
.htm
3. https://www.slideshare.net/rajvardhan7/business-model-63668319
